RTC Group Plc (AIM: RTC.L), the engineering and technical recruitment company, reported revenue for the full year ending 31 December 2016 of £67.9 million, an increase of 4.6% compared with £64.9 million in 2015.

RTC has three principal trading subsidiaries engaged in recruitment services: ATA, an engineering and technical recruitment consultancy, which supplies white and blue collar engineering and technical staff to a broad range of SME clients and vertical markets; Ganymede, which is focused on the supply and operation of blue collar contingent labour into safety critical markets; and GSS which predominantly provides managed service solutions for international clients.

Group gross margin reduced to 18% (2015: 20%) as a result of a change in business mix from permanent to contract revenue reflecting the short-term issues at ATA.

“2016 was another positive year for RTC,” Andy Pendlebury, CEO said. “Ganymede continues to build its reputation as a leading supplier to Network Rail on its CP5 (Control Period 5) maintenance and renewal programmes. ATA’s regional branch network delivered another solid year and the ATA project business, despite its third quarter difficulties, rebounded strongly in the last quarter of the year. Whilst overall group revenue has only increased modestly from 2015 and gross margin and net profit were not as originally hoped, cash generation was strong and we are pleased to be able to propose a 2.0 p per share final dividend.”

“We will continue to build value for shareholders through the further implementation of the Board’s strategic plan of building and investing in complimentary subsidiary businesses. RTC will seek to develop new opportunities for growth through the delivery of both independent and integrated solutions for existing and new clients. Our success in capturing multi-subsidiary business opportunities is growing and as more clients are aggressively accelerating supply chain consolidation, we believe our strategic advantage will gather pace,” Pendlebury said.

In trading today, RTC Group PLC traded at 55.25, up 3.27% on the day and 65.92% above the 52 week low of £33.30 set on 21 October 2016. Based on its current share price the company has a market value of £7.78 million.